On the subject of Sales Tax at a Craft Show.....
I really should stress that collecting and submitting Sales Tax, even if you’re only a one-time show Seller, shouldn’t be anything to be afraid of. I would encourage everyone to collect and submit Sales Tax when being a Vendor at any show. It’s just a part of being “in business”, and once you’ve decided to have a booth at a show, you’ve now become a “Vendor”, or a “business person” within your state. I congratulate you!
If it weren’t for Sales Tax revenue (in those states that collect them), we wouldn’t have the money feeding into our communities to pay for the benefits that we all rather enjoy. Other states have chosen to rely on other types of taxes, especially Property Taxes, to achieve the same thing. Communities must have money to pay for public benefits. We’re not talking about anything new here, but for the ones that are new to this type of taxation, and how to be a part of it, maybe I can relieve their stress.
When we sell something at our B&M shop, the Sales Tax collected goes to our local City, County, and State Agencies that all depend on those taxes to fund budgets for public works. We, as a community, have decided by vote to raise the funds needed by our agencies through the taxing of sales within the community, including our shop.
In the state of Oklahoma, the Sales Tax revenues that we submit from Craft Shows go to the City, County, & State in which the show took place. That means, if my wife and I are Vendors at a Craft Show in another Oklahoma community other than our own, we submit the tax revenue from that show to that community (Oklahoma taxes on the place of sale, not where you’re from. Other states may vary.). Same thing when we do a show in Texas. When at a show in Texas, we submit the Sales Taxes to the City, County, and State of Texas. I do all of our Sales Taxes on-line to each state. We have signed up for tax numbers for both states just to help our record keeping go smoothly, but it may not be necessary for “occasional Sellers”. Yes, it’s a little more paperwork, but since we’re a B&M shop, it’s just part of being in business.
Even if you don’t have a business, and aren’t into the full-time business reporting mode, you can still participate as an occasional Seller to raise funds for yourself by being active in a Craft Show, and comply with your state’s Sales Tax requirements at the same time. (See my former post in this thread about the venue providing a form for Sales Tax submission.)
I know....we all fear the “Tax Man”. But in the case of Sales Taxes, it’s a really good feeling to be a part of the business system that makes “things happen” in your community (and make some income for yourself too). Don’t be afraid of collecting Sales Taxes when you participate in a Craft Show. Your state will make it as easy as possible for you to collect and submit Sales Taxes.
Go to your state website, or talk to a local business to find out how to easily comply with your state’s Sales Tax regulations to have fun and make a little extra money at a Craft Show. In most cases, the Sales Taxes are a very small portion of your sales anyway. Compliance is much cheaper than any fine they may impose upon you for non-compliance. Besides that, you’ll never have to keep looking over your shoulder to see if “the Tax Man cometh” and be afraid. Instead, you can say, “Let the Taxman come, or cometh, what-ever, I’m in compliance! Now, let’s get down to selling!”
CD in Oklahoma